Maha has acquired 5% of 3R Petroleum in Brazil for a consideration of USD 69m. Management and the board of Maha have been involved in the founding and early growth of 3R. As part of the acquisition process, Maha sent an open letter to 3R’s board detailing its objectives with the investment and outlining its enhancement proposal for 3R. In short, this is the initiation of a consolidation plan in the Brazilian onshore segment, followed by the separation of 3R’s offshore assets.

In the letter to 3R’s board, Maha proposed a carve-out of its onshore oil assets, which would then be combined with PetroRecôncavo, a separately listed company. Maha considers PetroRecôncavo a natural candidate for the deal, as the companies operate neighbouring fields in the states of Bahia and Rio Grande do Norte, offering significant synergies were they to share infrastructure. Under the proposal, 3R’s offshore assets, Papa Terra and Peroá, would remain under 3R’s corporate structure and 3R would remain listed, while its shareholders would receive shares in PetroRecôncavo.

Aiming for a combination with PetroRecôncavo before end-February